Whenever you and another party have a contract, there is a risk of one person breaching it. Whether they fail to deliver an item on time or you don’t receive the services you paid for, a breach of contract can have a real impact on your business.
With any kind of breach of contract, you have a few options. The first is to speak with the other party about the breach and what you can do to rectify it. For example, if you have a contract with a photographer who was supposed to provide your company with 10 headshots of your staff but three were not completed on time, you may give them the opportunity to make up for those missing pictures or to compensate you fairly for the work they couldn’t complete.
Another option that you have is to formally break the contract with them and to move on to work with someone else. When you end a contract because of another party’s breach, there may be penalties that they have to cover, depending on the verbiage of your contract.
Finally, in a worst-case scenario, you may want to take the other party to arbitration or to court to enforce the contract or to ask that the other party compensates you for your losses.
Dealing with a breach of contract can leave a sour taste in your mouth and make you not want to work with the other party. However, there may be good ways to resolve the conflict and continue to work together. Your attorney can talk to you more about the best course moving forward.